A total of 19 out of 25 properties offered at Bayleys’ latest round of commercial and industrial portfolio auctions in Auckland, Hamilton and Wellington have sold under the hammer for close to $23 million.
The highest price paid was $4,575,000 for Burger King’s New Zealand head office at 6 Antares Place, Rosedale on the North Shore (pictured). The recently refurbished 1266 sq m commercial and warehouse building was sold at a 6.4% yield with a new 8-year anchor lease to Antares Restaurant Group, which operates the Burger King chain in New Zealand, plus a smaller new four-year lease to engineering consultancy Engeo.
Low yields were the order of the day at the Auckland and Hamilton auctions:
A 266 sq m under utilised corner site zoned Mixed Use at 29 Nixon Street in Grey Lynn, with a 190m2 industrial building leased to an electrical business with a final expiry mid 2018, sold for $920,000 at a 3.3 per cent yield.
A 956 sq m car yard site at 3026 Great North Road, New Lynn attracted 60 bids before selling well over reserve for $1,155,000 at a 4.2% yield to a car yard owner from another part of Auckland. The current tenant last year exercised the first of two 3-year rights of renewal.
Nearby at 3029A Great North Road, New Lynn, 325 sq m bank premises which BNZ has occupied since 2002 sold for $2,326,000 at 6.1% yield.
In the growing North Waikato township of Tuakau, 347 sq m retail premises with three tenants including NZ Post sold for $805,000 at a 5.1% yield.
824 sq m industrial premises on a 1144 sq m site at 39 Porana Road, Wairau Valley occupied by Windows Treatments NZ, with a smaller upstairs office tenancy, sold for $2,010,000 at a low yield for an industrial property of 5.4%.
A 2020 sq m light industrial and retail complex with five tenants at 62 Ben Lomond Crescent, Pakuranga located on a 4049 sqm high profile corner site sold for $3,500,000 at a 6.2% yield
Three rural supplies stores, jointly marketed with CBRE, with new 8-year lease backs to Fonterra wholly owned subsidiary RD1 in Hellensville, Kopu (near Thames) and Taupiri sold respectively for $1,710,000 at a 6.9% yield, $1,925,000 (7.05%) and $1,650,000 (8.2%).
Six out of seven properties put up for sale in Wellington sold under the hammer, mainly smaller industrial premises. Arguably, the bargain of the auction was a refurbished 80m² penthouse at 99 The Terrace, with panoramic harbour views and access to a large balcony area, which sold vacant for $280,0000. It came with three offices, bathroom/ shower and kitchenette facilities and estimated potential net rental income of $20,000pa + GST.